Teacher Stars produces stars for elementary teachers to rewa

Teacher Stars produces stars for elementary teachers to reward their students. Teacher Stars\' trial balance on June 1 follows:

Teacher StarsTrial Balance June 1, 2016

Balance

Account Title

Debit

Credit

Cash

$22,000

Accounts Receivable

188,000

Inventories:

Raw Materials

6,300

Work-in-Process

40,000

Finished Goods

22,800

Plant Assets

300,000

Accumulated Depreciation

$68,000

Accounts Payable

133,000

Wages Payable

2,000

Common Stock

147,000

Retained Earnings

229,100

Sales Revenue

Cost of Goods Sold

Manufacturing Overhead

Selling and Administrative Expenses

Total

$579,100

$579,100

June1 balances in the subsidiary ledgers were as follows:

Work-in-Process Inventory subsidiary ledger: Job 120,$40,000
Job 121, $0

bullet•

Finished Goods Inventory subsidiary ledger: Large Stars,$9,600; Small Stars, $13,200

June transactions are summarized as follows:

Collections on account, $144,000. b. Selling and administrative expenses incurred and paid, $27,000. c. Payments on account, $37,000. d. Materials purchased on account: Paper, $23,300; indirect materials, $4,000. e. Materials requisitioned and used in production: Job 120: Paper, $ 450 Job 121: Paper, $ 7,550 Indirect materials, $ 1,200 f. Wages incurred during , . Labor time records for the month: Job 120, ; Job 121, ; indirect labor, . June $34,000 $3,250 $16,600 $14,150 g. Wages paid in include the balance in the Wages Payable at plus of wages incurred during . June May 31 $31,200 June h. Depreciation on plant and equipment, $3,400. i. Manufacturing overhead allocated at the predetermined overhead allocation rate of 60% of direct labor cost. j. Jobs completed during the month: Job 120 with 900,000 Large Stars at a total cost of $45,650. k. Sales on account: all of Job 120 for $100,000. l. Adjusted for overallocated or underallocated manufacturing overhead.

1. Journalize the transactions for the company. 2. T-accounts for the general ledger, the Raw Materials Inventory subsidiary ledger, the Work-in-Process Inventory subsidiary ledger, and the Finished Goods Inventory subsidiary ledger have been opened for you along with each account\'s balance as given. Post the journal entries to the T-accounts using the transaction letters as a reference. 3. Prepare a trial balance at June 30, 2016. 4. Use the Work-in-Process Inventory T-account to prepare a schedule of cost of goods manufactured for the month of June. 5. Prepare an income statement for the month of June.

Raw Materials Inventory subsidiaryledger: Paper,$ 4,700 indirect materials, $1,600
	Work-in-Process Inventory subsidiary ledger: Job 120,$40,000 Job 121, $0
bullet•	Finished Goods Inventory subsidiary ledger: Large Stars,$9,600; Small Stars, $13,200

Solution

ans 1 Transa Accounst Title Dr Cr a Cash $144,000 Accounts Receivable $144,000 b) Selling & Administraive expeses 27000 Cash 27000 c) Accounts payable 27000 Cash 27000 d) Raw Material Inventory $27,300 Accounst Payable $27,300 e Work in Process Inventory $8,000 Manufacturing Overhead 1200 Raw material Inventory $9,200 f Work in Process Inventory $19,850 Manufacturing Overhead 14150 Wages payable $34,000 g Wages payable $33,200 Cash $33,200 h Manufacturing Overhead 3400 Accumulated Depreciation 3400 i Work in Process Inventory $11,910.0 Manufacturing Overhead $11,910.0 (60%*19850) j Finished Goods Inventory 45650 Work in Process Inventory 45650 k Accounts Receivable 100000 Sales 100000 Cost of good sold 45650 Finished Goods Inventory 45650 l Manufacturing Overhead $6,840 Cost of Good sold (overapplied) 6840 ans 2 Raw Material Inventory Opening Balance 6300 e) WIP $8,000 d) accounts payable $27,300 e) Man. Overhead $1,200 EndinG balance $24,400 Work In process Opening Balance 40000 Finsihed Goods Inv $45,650 e)Raw material 8000 f) Wages payable $19,850 i) ManufacturingOverhead $11,910 Ending balance 34110 Cost of good sold Finished Goods Inventory 45650 Finsihed Goods Opening Balance 22800 Cost of good sold $45,650 Work In process $45,650 Ending balance $22,800 Manufacturing Overhead e)Raw material 1200 i)Work In process $11,910 f) Wages payable 14150 h) Accumulated Depreciation 3400 end bal $6,840 Wages payable Cash 31200 Op bal 2000 Work in Process Inventory $19,850 Manufacturing Overhead 14150 End bal 4800 Trial Balance Dr Cr ans 3 Cash $87,640 Accounts Receivable $144,000 Inventories: Raw Materials $24,400 Work-in-Process 34110 Finished Goods $22,800 Plant Assets 300000 Accumulated Depreciation 71400 Accounst payable $133,300 Wages payable 4800 Common stock 147000 Retained Eranings 229100 Sales Revenue 100000 Cost of Goods Sold 45650 Selling & administrative expenses 27000 Total $685,600 $685,600 ans 4 Statement of Cost of Goods manufactured Direct Material Beginning, Direct Material $4,700 Add: Direct material purchased 23300 Total Direct Material Available $28,000 Less: ending, Direct material $20,000 Direct Material used $8,000 Direct Labor $19,850 Manufacturing overhead Indirect Labor $14,150 Indirect Material 1200 Depreciation 3400 Total manufacturing overhead 18750 Total manufacturing cost $46,600 Beginning , work in process 40000 Ending, Work in process 34110 Cost of Goods Manufactured $52,490 ans 5 Income statement Sales 100000 Less: cost of Good sold Opening FG Inventory 22800 Add: Cost of good manufactured $52,490 Less: Manufacturing overhead $6,840 Less: ending Invemtory $22,800 $45,650 Gross Profit $54,350 Less: selling & Administrative expenses 27000 Net operating Income $27,350